Groundbreaking of UP’s First Semiconductor Manufacturing Unit Scheduled for January’ 26
The groundbreaking ceremony of Uttar Pradesh’s first semiconductor manufacturing unit is expected to be held in January 2026. This plant will be developed in Sector 28 of the Jewar area in Gautam Budh Nagar through a Joint Venture (JV) between HCL Tech and Foxconn.
HCL – Foxconn’s upcoming project will be developed with an investment of Rs. 3,706 crore. This facility will mark the first semiconductor manufacturing unit in Uttar Pradesh and is expected to strengthen India’s electronics manufacturing ecosystem under the India Semiconductor Mission (ISM).
HCL–Foxconn OSAT Facility: Focus on Display Driver Integrated Circuits
The upcoming HCL–Foxconn semiconductor plant falls under the Outsourced Semiconductor Assembly and Test (OSAT) category. The plant will focus on the production of Display Driver Integrated Circuits (DDICs), which are critical components used in smartphones, televisions, computers, and wearable devices.
DDIC chips play an important role in advanced display technologies such as 4K, UHD, microLED, OLED, and AMOLED, while also enabling features like touch control and foldable screens.
The manufacturing unit is expected to process around 20,000 silicon wafers per month, supporting large-scale microchip production and reducing India’s dependence on imports. The design output capacity of the plant is estimated at 36 million units per month.
Growing Momentum in India’s Semiconductor Manufacturing Ecosystem
Over the past few years, several major companies have announced plans to establish semiconductor manufacturing facilities in India. In February 2022, Foxconn signed a joint venture agreement with Vedanta to manufacture semiconductors in the country. However, in July 2023, Foxconn withdrew from the proposed JV with Vedanta for setting up a semiconductor manufacturing facility.
Apart from the Vedanta–Foxconn initiative, Tata Projects won the EPC contract in September 2023 for constructing Micron Technology’s semiconductor facility in Sanand, Gujarat. The project involves an investment of USD 2.75 billion (approximately Rs. 22,888.60 crore).
Additionally, in March 2024, the Prime Minister of India laid the foundation stones for three semiconductor plants with a combined estimated investment of Rs. 1.26 lakh crore.
RRP Electronics Limited also inaugurated its Outsourced Semiconductor Assembly and Test (OSAT) facility in Maharashtra on 23 March 2024. More recently, in February 2025, SiCSem Private Ltd. announced an investment of Rs. 2,500 crore to set up a semiconductor manufacturing plant in Bhubaneswar, Odisha.
Reducing Import Dependence and Strengthening Domestic Capabilities
The rapid expansion of semiconductor manufacturing capacity in India aims to reduce the country’s heavy reliance on imports. India imported semiconductors worth approximately Rs. 1.71 lakh crore (around USD 20.5 billion) in FY24, primarily from China, Taiwan, South Korea, Japan, and the United States, mainly due to strong domestic demand from the mobile and automotive sectors.
Semiconductor manufacturing in India is gaining momentum under the India Semiconductor Mission (ISM), which was approved by the Union Cabinet in December 2021 with a total outlay of Rs. 76,000 crore. According to a report by Mordor Intelligence, India’s semiconductor market is valued at USD 13.54 billion in 2025 and is projected to reach USD 23.58 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.39%.
Capacity expansions supported by the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes continue to reposition India as a credible alternative to traditional East Asian semiconductor manufacturing hubs.
